Grower outrage over Coles price cuts

The group representing WA vegetable growers has attacked Coles after it flagged a major extension of its price war, slashing the price of selected fruit and vegetables by up to 50 per cent from today.

If Woolworths matches the price cuts it will extend the supermarket price war, which started with milk and then flowed to bread and other basic grocery items.

VegetablesWA executive officer Jim Turley told The West Australian Coles’ action was disgraceful.

“Growers are on the fringe of deciding whether this industry is worth it or not because the cost to produce has grown out of sight in the past two years,” he said.

Mr Turley appealed to consumers to consider if they wanted fresh vegetables in WA.

“Our growers will not survive if the prices are pushed down by 50 per cent,” he said.

“Even for our most efficient growers there comes a time when if you can’t make it pay, you must consider your investment in your business.”

He said politicians had to sit up and take notice because the future of horticulture was at stake.

The general manager for fresh produce at Coles, Greg Davis, told Fairfax the company had worked closely with growers to transform fresh fruit and vegetables prices, investing in new growing techniques, quality control, in-store displays and now lower prices for customers.

A spokesman for the company, Jon Church, said it had invested millions in the campaign but had worked with suppliers on an agreed price.

“By giving growers a commitment that we will take as much of their crops as we possibly can, we have provided them certainty that they have a market for their product,” he said.

AusVeg, which represents growers nationally, told Fairfax the Coles' announcement was concerning because it was unclear what impact the price reductions would have on the industry over time.

AusVeg spokesman William Churchill said the push by the major retailers to capture market share would place pressure on other growers who did not supply Coles, as competitors tried to replicate the offer to their customers.